The property division process in a divorce of individuals with complex asset portfolios will always be a challenge. Some assets can bring about contention, and if you are the spouse who had little insight into the family finances during the marriage, you might be concerned about the fairness of the process - especially when it comes to the untangling of the financial facets of a marriage that lasted many years.
A major part of most divorces in Colorado is deciding what to do with the family home. Most couples will not own their home but will rather be paying a mortgage. The mortgage obligations are something that should be handled in the divorce agreement, but it is also important for divorcing couples to understand exactly what happens with the mortgage while the divorce is in progress before any official orders have been made by the court.
According to Bankrate, a lender does not recognize a divorce when it comes to a mortgage. This means that if both names are on the mortgage, then both people are still responsible, regardless of their marriage status. The only way that the debt can be passed to just one spouse is through refinancing or selling the property. Refinancing allows one spouse to get the mortgage in his or her name only, thus relieving the other spouse of the obligation.
Over the past couple of decades, a growing number of people getting divorced in the United States are over the age of 50. These divorces are often referred to as gray divorces and plenty of people in Colorado have experienced them as well. When facing a divorce as retirement is looming nearer, concerns about these assets can be more important than they may be when getting divorced at 35.
For many couples, retirement accounts are some of the biggest assets to divide in their divorces. The U.S. Department of Labor explains that the use of a qualified domestic relations order is the way for people to potentially avoid early withdrawal fees and penalties when splitting retirement assets during a divorce. The reason for this is that a QDRO legally identifies the to-be former spouse as authorized to receive distributions from an account. This person is then referred to as an alternatee payee.
Going through a divorce is extremely stressful even under the best of circumstances. Continual stress can be harmful in many different respects, from impacting your physical and emotional health to clouding your decision-making ability. If you and your spouse are considering divorce in Colorado, it’s crucial that you know the proper methods of keeping stress at bay to ensure your well-being remains intact.
Psychology Today recommends some useful tips for dealing with divorce-induced stress, including being open and honest about your emotions with others. Close friends and family are invaluable during a divorce, and it’s important that you don’t hide your feelings when discussing the situation with them. Also, it helps to remember that everyone deals with the fallout of a divorce differently. While some people work through negative emotions rather quickly, others will need ample time to heal.
If you are facing a divorce, you are most likely concerned about your partner not being completely honest when it comes to disclosing assets. While couples in Denver are expected to be forthcoming about all assets so that the court can make a fair decision, people often attempt to misrepresent or even hide their financial status to prevent their spouse from being awarded a portion.
As stated by Forbes, lying about assets during a divorce is exceedingly common among many couples. However, the practice is illegal and can result in significant legal ramifications. While the actual penalties for lying under oath vary quite a bit, in many cases a fine will assessed against your spouse if found guilty of perjury. He or she might also be obligated to pay for any attorney fees you incurred, and could even face the possibility of jail time.
If you and your spouse have decided to end your marriage, you can go to court or choose an alternative method of resolving your divorce in Colorado. At Kaplan Law LLC, we find that mediation can be a great alternative to court for many couples. Mediation is an option that can give you more control and allows you to work together to come to a resolution.
Mediation is the process of working with a mediator to come to a divorce agreement. It allows you the chance to discuss the issues at hand instead of presenting your case one at a time as is done in court. It also offers a level of confidentiality that a court proceeding does not. In many cases, mediation is a quicker process because you are not at the mercy of court schedules or waiting for the judge to make a ruling.
Divorces tend to spike in Colorado and across the nation at the beginning of each new year, and many divorcing parties opt to start the process before they are sufficiently prepared. The Huffington Post reports that the number of divorce filings in America increases by a third in January, with many couples choosing to do so after problems and arguments over children and finances.
Part of the uptick, too, may be due to the fact that many couples spend more time together during the holiday season than is typical throughout the rest of the year, which may intensify or exacerbate existing problems. Many people also wait until after the holidays to avoid causing unnecessary strife for the children during a time that is supposed to be happy and enjoyable. Before making hasty divorce decisions, however, it is important to fully understand one’s assets, liabilities and finances.
Divorcing couples in Denver may take to their respective social media pages to vent frustrations. While social media is great for keeping in touch with friends and family, it can prove quite damaging to divorce proceedings. This is especially true in contentious divorces where high-value assets and property are at stake.
According to Forbes, unhindered social media posting during a divorce can give away a lot more than a person intends. For instance, the social network of married couples often include many mutual friends and loved ones. Accordingly, even if an ex-spouse has been deleted from one’s account he or she might still be able to access sensitive information. Recent purchases like vacations and gifts can paint a different financial picture than what a person is alleging in court.
If you are one of the many Colorado residents who may be expecting a divorce in 2017, you will have a lot of questions about what you can expect. There will be many things that you will have to make sure are properly taken care of to protect you and your children going forward. Maintaining your health insurance coverage is one of those things.
According to 360 Degrees of Financial Literacy, what will happen to your health insurance may depend upon your current employment status. If you have quit your job to stay home and raise your children, you may want to check into whether or not your divorce settlement could require your spouse to continue to provide insurance coverage for you and your children. Your spouse's employer or the issuing health plan will be required by law to provide and comply with the terms of the decree. The Consolidated Omnibus Budget Reconciliation Act also may give you an avenue to continue your coverage for a period of time.
Going through a divorce around the holidays can be difficult, but it is the perfect time to set resolutions for the New Year and a new life. Goals can be made that will help people in Colorado more easily navigate divorce and ease stress currently as well as for years to come.